(Taipei Comprehensive News) Taiwan Hon Hai Group announced the withdrawal from the semiconductor joint venture with Vedanta Group (Vedanta Group), but emphasized that Hon Hai still supports the Indian government's "Indian manufacturing" vision.
Comprehensive Reuters, Agence France -Presse and Taiwan Economic Daily reported that Hon Hai Group announced on the evening of Monday (July 10) that Foxconn will remove the name of the joint venture.Essence
Statement stated that the two sides worked together for more than a year in order to achieve a chip factory in India, but unanimously decided to terminate the plan.
Statement emphasized that Hon Hai will continue to support the Indian government's "Indian manufacturing" vision, establish more diverse partnerships in the needs of interest relations, and still confidence in the development direction of Indian semiconductor.
Earlier, the Wenda Group of India, which started mining, issued a statement on the 7th, saying that through its holding company to take over the ownership of the company's joint venture with Hon Hai.
The two sides stated that there was no specific reason for Hon Hai's exit, but sources revealed that Hon Hai withdrew was because of concerns about India's delayed approval incentive measures.In addition, Wenda has been suffering from rising debts, and some rating agencies have lowered their rating this year.
Hon Hai Group announced in September last year that he signed a memorandum of cooperation with Wenda, set up a semiconductor wafer plant in a joint venture, and invested 19.5 billion US dollars (about S $ 26.2 billion).Factory is expected to be put into operation in 2025.
However, Indian media reported that the joint venture company has made a slow progress due to the lack of technical partners, and rewards and subsidy applications have also been submitted by the Indian government as required by new evaluation conditions.
Reuters reports that Indian Prime Minister Modi has made chip manufacturing as the primary task of the "new era" of the electron manufacturing industry in the country's economic strategy. Hon Hai withdrew from the joint venture plan and will crack down on the ambition of the Modi semiconductor manufacturing plan.Essence
